Ralcorp Holdings Inc. has agreed to the exchange of its remaining stake in Post Holdings Inc. in settlement of approximately $200 million of debt outstanding under the company’s credit agreement dated Aug. 30, 2012. Ralcorp retained an approximately 20% stake in Post as part of the separation of Post Foods, which was completed on Feb. 6, 2012.
“We are pleased to announce the agreement to monetize our ownership interest in Post,” said Kevin J. Hunt, Ralcorp’s CEO and President. “The proceeds from the transaction will enhance our ability to execute against our growth through acquisition strategy, allowing us to continue to create significant shareholder value. With the resolution of our Post stake, the consolidation of three private brand units into our new Ralcorp Center Store business and our ongoing cost reduction efforts, Ralcorp is well positioned to execute against our strategic plan and continue to deliver long-term sustainable growth.”